The City of Los Angeles has approved the issuance and sale of up to $40 million in Special Tax Refunding Bonds (Series 2024) for the Community Facilities District No. 4 (Playa Vista - Phase 1). The bonds will refund the outstanding Series 2014 Bonds to achieve lower annual and total debt service payments, thereby reducing the special tax levied on property owners within the district. This financial maneuver aims to generate net present value savings of approximately $3.05 million, representing a 6.66% savings of the refunded par, while also adhering to the City’s financial policies and Mello-Roos and Assessment Financing Policies. The bond issuance will be secured solely by special taxes levied within the district, without impacting the City’s General Fund.
This decision is significant as it reduces the financial burden on property owners within the Playa Vista district, potentially enhancing the area’s appeal and economic stability. The refinancing aims to lower debt service payments and maintain compliance with municipal financial policies, benefiting the local community and the city's financial health.